NGCP grid plan aligns with gov’t RE targets

THE National Grid Corp. of the Philippines (NGCP) said its Transmission Development Plan (TDP) is compliant with the Department of Energy’s (DoE) renewable energy (RE) target of 50% RE integrated with the grid by 2040.

In a statement on Monday, the NGCP said its TDP incorporates developments in the variable renewable energy (VRE) industry, in anticipation of committed renewable energy plants which are due to be connected to the grid in the next few years.

“The annual TDP prepared by NGCP and presented to stakeholders in public consultations is aligned with the Department of Energy’s National Renewable Energy Program 2020-2040. This targets 50% integration of renewables in the grid’s installed capacity by 2040,” the NGCP said.

The NGCP added that integrating additional RE into the grid will also require “reinforcement in both policy and support infrastructure.”

“The entry of more conventional, nonvariable generation and energy storage systems to support VRE installations must be planned simultaneously,” the NGCP said.

The company said the State Grid Corp. of China (SGCC) which owns a 40% stake in NGCP, can deploy grid technologies that can support green and sustainable power grids.

“With its access to SGCC’s technology, NGCP is more than capable of accommodating increasing integration of renewable energy into the grid for a more sustainable energy mix,” the NGCP said.

NGCP capital expenditure (capex) requires the approval of the Energy Regulatory Commission (ERC) under Republic Act No. 9136, or the Electric Power Industry Reform Act.

“The ERC, among all agencies, will be centrally crucial to the success of all this. The DoE itself has recognized that transmission projects to support their recent offshore wind projects have not been included in NGCP’s 5^th regulatory period application with the ERC,” it added.

ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said the Commission defers to the DoE for the design and implementation of offshore wind (OSW) projects.

“Once the DoE clears the plan and tasks of the building of transmission projects for OSW projects, we shall evaluate the applications filed for such network enhancements without delay,” Ms. Dimalanta said in a Viber message. 

The NGCP said access to funding was not an issue. However, it cited regulatory constraints like capex approvals, the protracted permit process at local government unit level, and right-of-way issues as the “main roadblocks” to completing the company’s projects.

“If the ERC will allow us to spend the capital needed to support this laudable push towards green energy, we are very confident that NGCP will be able to deliver,” the NGCP said.

“We hope for the government and regulator’s support in drafting policies and allowing NGCP to have enough capex to fund the required projects to support RE. This move towards a greener and more sustainable grid requires a holistic approach and we hope for synergy among all the energy players to ensure the fruition of these efforts,” it added. — Ashley Erika O. Jose